KTVU: Casino M8trix accused of hiding profits to avoid paying out to charity
By: Robert Handa
SAN JOSE, Calif. — A legal fight is brewing that could threaten the future of San Jose’s huge gambling complex, Casino M8trix.
Sources at City Hall tell KTVU the California Attorney General Kamala Harris filed a complaint against the casino accusing it of lying about profits to avoid paying a mandated percentage to a local charity.
The casino agreed to pay 5.15 percent of net profits to AACI, Asian Americans for Community Involvement, to fund gambling addiction programs as part of its 2009 deal with the city to operate.
But sources tell KTVU the casino claimed it had not made any profit for several years. According to the state allegation, the club was concealing tens of millions of profits throughout this time.
Those sources say investigators suspect the casino is funneling profits to ‘shell’ businesses.
San Jose Councilman Sam Liccardo confirmed the accusation has been filed and said, “if proven to be true, M8trix has committed criminal fraud, stifling local non-profit programs of millions of dollars. If this fraud is proven, I am committed to see Casino M8trix’s city permit revoked.”
The accusation will be presented to the California Gambling Control Commission which could strip the casino of its license as well.
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